1.—(1) Subject to the provisions of this Part, on an application made by a person in accordance with this Part, the Comptroller shall make a ruling on how any provision of this Act applies, or would apply, to the person and to the arrangement for which the ruling is sought.

(2) The Comptroller may make a ruling on how any provision of this Act applies to the arrangement described in an application whether or not reference was made to that provision in the application.

(3) The Comptroller shall not make a ruling on a provision of this Act that authorises or requires the Comptroller to —

(a)

impose or remit a penalty;

(b)

inquire into the correctness of any return or other information supplied by any person;

(c)

prosecute any person; or

(d)

recover any debt owing by any person.

(4) An application for a ruling —

(a)

shall be made in such form as the Comptroller may determine; and

(b)

shall comply with the disclosure requirements of paragraph 9.

(5) An applicant for a ruling may at any time withdraw the application by notice in writing to the Comptroller.

2. The Comptroller may decline to make a ruling if —

(a)

the application for the ruling would require the Comptroller to determine any question of fact;

(b)

the Comptroller considers that the correctness of the ruling would depend on the making of assumptions, whether in respect of a future event or any other matter;

(c)

the matter on which the ruling is sought is subject to an objection or appeal, whether in relation to the applicant or any other person;

(d)

the applicant has outstanding debts relating to earlier ruling applications; or

(e)

the matter on which the ruling is sought is the subject of a return which has been or is due to be lodged under this Act.

3. The Comptroller shall not make a ruling if —

(a)

at the time the application is made or at any time before the ruling is issued, the Comptroller considers that the person to whom the ruling is to apply is not seriously contemplating the arrangement for which the ruling is sought;

(b)

the application is frivolous or vexatious;

(c)

the matter on which the ruling is sought —

(i)

concerns tax (excluding estimated tax) that is due and payable, unless the application is received before the tax is due and payable;

(ii)

involves the interpretation of any foreign law; or

(iii)

is being dealt with, or in the Comptroller’s opinion should be dealt with, by one or both competent authorities of the parties to an agreement to avoid double taxation;

(d)

a ruling already exists on how the relevant provision of this Act applies to the person and the arrangement, and the proposed ruling would apply to a period or a year of assessment to which the existing ruling applies;

(e)

an assessment (other than an assessment of any estimated tax) relating to the person, the arrangement, and a year of assessment to which the proposed ruling would apply has been made, unless the application is received by the Comptroller before the date the assessment is made;

(f)

the Comptroller is undertaking an audit or investigation on how any provision of this Act applies to the applicant, or to an arrangement similar to the arrangement which is the subject of the application, during any period for which the proposed ruling would apply were the ruling to be made;

(g)

in the Comptroller’s opinion, the applicant has not provided sufficient information in relation to the application after the Comptroller has requested further information;

(h)

in the Comptroller’s opinion, it would be unreasonable to make a ruling in view of the resources available to the Comptroller; or

(i)

the application for the ruling would require the Comptroller to form an opinion as to a generally accepted accounting principle or to form an opinion as to a commercially acceptable practice.

4. The Comptroller shall, where he has declined to make a ruling under paragraph 2 or has not made a ruling by virtue of paragraph 3, notify the applicant in writing of his decision and the reasons therefor.

5. Where the Comptroller has made a ruling to a person on the application of any provision of this Act in relation to an arrangement, and —

(a)

the ruling applies in relation to the arrangement during the whole or any part of the period specified in the ruling; and

(b)

the person has under paragraph 17 disclosed in the return provided under this Act that he has relied on the ruling in preparing and providing the return,

the Comptroller shall apply the provision in relation to the person and the arrangement in respect of the whole of the period or the part of the period, as the case may be, in accordance with the ruling.

6. A ruling shall apply in relation to an arrangement as a ruling on a provision of this Act —

(a)

only if the provision is expressly referred to in the ruling; and

(b)

only for the period for which the ruling applies.

7. A ruling shall not apply to a person in relation to an arrangement if —

(a)

the arrangement is materially different from the arrangement identified in the ruling;

(b)

there was a material omission or misrepresentation in, or in connection with, the application for the ruling;

(c)

the Comptroller makes an assumption about a future event or another matter that is material to the ruling, and the assumption subsequently proves to be incorrect; or

(d)

the Comptroller stipulates a condition that is not satisfied.

8.—(1) A person, in his own right or on behalf of a person who is yet to come into legal existence, may apply to the Comptroller for a ruling on how a provision of this Act applies, or would apply, to —

(a)

the person making the application or the prospective person, as the case may be; and

(b)

an arrangement.

(2) Two or more persons may jointly apply, or a person on behalf of 2 or more persons who are yet to come into legal existence may apply, to the Comptroller for a ruling on how a provision of this Act applies, or would apply, to each person and to an arrangement.

9.—(1) An application for a ruling shall —

(a)

identify the applicant;

(b)

disclose all relevant facts (including the reasons for the arrangement, if applicable) and documents relating to the arrangement in respect of which the ruling is sought;

(c)

state the provision of this Act in respect of which the ruling is sought;

(d)

state the proposition of law (if any) which is relevant to the issues raised in the application;

(e)

state whether a previous application has been made on the same or any similar arrangement by the applicant and the result of any such application; and

(f)

provide a draft ruling.

(2) If the Comptroller considers that it would be unreasonable to require the applicant to comply with any of the requirements in sub-paragraph (1)(c) to (f), the Comptroller may waive those requirements.

(3) Any document provided by any person under this Schedule shall be retained by the Comptroller.

10. The Comptroller may at any time request further relevant information from an applicant for a ruling.

11.—(1) If the Comptroller considers that the correctness of a ruling would depend on assumptions being made about a future event or other matter, the Comptroller may make the assumptions that he considers to be most appropriate.

(2) The Comptroller may not make assumptions about information which the applicant can provide.

12.—(1) A ruling made by the Comptroller shall state —

(a)

that it is a ruling made under section 108;

(b)

the identity of the person, the provision of this Act, and the arrangement (which may be identified by reference to the arrangement in the application) to which the ruling applies;

(c)

how the provision of this Act applies to the arrangement and to the person;

(d)

the period or year of assessment for which the ruling applies;

(e)

the material assumptions about future events or other matters made by the Comptroller; and

(f)

the conditions (if any) stipulated by the Comptroller.

(2) The Comptroller shall notify the making of a ruling by sending a copy of the ruling to the person or persons who applied for it.

13.—(1) The Comptroller may at any time withdraw a ruling by notifying the person to whom the ruling applies in writing of the withdrawal and the reasons therefor.

(2) The ruling is withdrawn from the date specified in the notice of withdrawal.

(3) The date referred to in sub-paragraph (2) may not be earlier from the date on which the person could reasonably be expected to receive the notice of withdrawal.

(4) If the Comptroller withdraws a ruling —

(a)

the ruling does not apply to any arrangement entered into or effected on or after the date of withdrawal; but

(b)

the ruling shall continue to apply in relation to any arrangement for the remainder of the period specified in the ruling if the arrangement has been entered into or effected before the date of withdrawal.

14.—(1) The Comptroller does not have to withdraw and reissue a new ruling to correct a typographical or a minor error if the correction does not change the meaning of the ruling.

(2) A ruling that is not withdrawn and reissued remains valid.

15. A ruling does not apply from the date a provision of this Act is repealed or amended to the extent that the repeal or amendment changes the way the provision applies in the ruling.

16. The fact that there has been an application for a ruling does not affect a person’s obligation to provide any return, make any payment, or do any other act, or the Comptroller’s power to make or amend any assessment.

17. Where —

(a)

a person has obtained a ruling;

(b)

the person is required to provide a return under this Act; but

(c)

in preparing the return the person is required to take into account the way in which a provision of this Act applies to the arrangement identified in the ruling,

the person shall disclose in the return —

(i)

the existence of the ruling;

(ii)

whether or not the person has relied on the ruling in preparing and providing the return; and

(iii)

any material changes to the arrangement identified in the ruling.

Part II

1. The fees specified in respect of an application for a ruling made in accordance with Part I are as follows:

(a)

a non-refundable application fee of $562 (inclusive of goods and services tax), which must accompany the application;

(b)

a further fee, calculated at $140.50 (inclusive of goods and services tax) per hour (or part hour), beyond the first 4 hours, spent in consideration of the application by the Comptroller, including any time spent by the Comptroller in consulting with the applicant;

(c)

an additional fee, of up to 2 times the aggregate fee under sub-paragraphs (a) and (b), for the Comptroller to give priority to the application and to expedite his consideration thereof; and

(d)

reimbursement fees in respect of —

(i)

any fees paid by the Comptroller to any person, if the Comptroller requires external advice in relation to the ruling and the applicant agrees to the Comptroller seeking such external advice; and

(ii)

any costs and reasonable disbursements incurred by the Comptroller in relation to the ruling.

2. If an application for a ruling is withdrawn, the applicant is liable to pay all fees incurred before the Comptroller received notice of the withdrawal.

3. The Comptroller must ensure as far as is reasonably practicable that every effort is made to minimise the fees to which an applicant is liable in respect of an application for a ruling.